Proposed Mission: 100 Climate-neutral Cities by 2030 - by and for the Citizens - Report of the Mission Board for climate-neutral and smart cities ...
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Proposed Mission:
100 Climate-neutral Cities
by 2030 – by and for the
Citizens
Report of the Mission Board for climate-neutral
and smart cities
Proposed Mission: 100 Climate-neutral Cities by 2030 – by and for the
Citizens
Report of the Mission Board for climate-neutral and smart cities
European Commission
Directorate-General for Research and Innovation
Directorate D — Clean Planet
Unit D.2 — Future Urban and Mobility systems
Contact Philippe Froissard
Email rtd-horizon-europe-mission-cities@ec.europa.eu
RTD-PUBLICATIONS@ec.europa.eu
European Commission
B-1049 Brussels
Manuscript completed in September 2020.
Authors – Misson Board member: Hanna Gronkiewicz-Waltz (chair), Allan Larsson (vice-chair), Anna Lisa
Boni (rapporteur), Katrine Krogh Andersen, Paulo Ferrao, Emmanuel Forest, Romana Jordan, Barbara Lenz,
Julio Lumbreras, Chrysostomos Nicolaides, Joakim Reiter, Martin Russ, Anne Sulling, Daniël Termont, Maria
Vassilakou.
This document has been prepared for the European Commission, however it reflects the views only of the
authors, and the European Commission is not liable for any consequence stemming from the reuse of this
publication.
More information on the European Union is available on the internet (http://europa.eu).
Print ISBN 978-92-76-21541-7 doi: 10.2777/347806 KI-02-20-662-EN-C
PDF ISBN 978-92-76-21542-4 doi: 10.2777/46063 KI-02-20-662-EN-N
Luxembourg: Publications Office of the European Union, 2020
© European Union, 2020
The reuse policy of European Commission documents is implemented based on Commission Decision
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EUROPEAN COMMISSION
Proposed mission:
100 climate-neutral cities
by 2030 – by and for the
citizens
Report of the Mission Board for climate-neutral
and smart cities
This document is the Mission Board’s proposal to the European Commission for a
mission on climate-neutral and smart cities.
Directorate-General for Research and Innovation
2020 Clean Planet EN
Contents
1 EXECUTIVE SUMMARY ............................................................................... 5
2 WHY CITIES? ............................................................................................ 6
3 MISSION AIM AND OBJECTIVES .................................................................. 7
4 CONTRIBUTION TO SDGS .......................................................................... 8
5 THE EU CLIMATE FRAMEWORK AND THE MISSION ........................................ 9
6 A STRATEGY FOR CLIMATE NEUTRALITY ...................................................... 10
7 THE CLIMATE CITY CONTRACT.................................................................... 11
8 THE PARTNERSHIPS UNDER THE CONTRACT ................................................ 12
9 TOWARDS A NEW CITY GOVERNANCE – BY AND FOR THE CITIZENS ............... 13
10 A STRATEGY TO SECURE FUNDING AND FINANCING ................................... 15
11 ECONOMIC TRANSITION .......................................................................... 16
12 A MISSION THAT PROMOTES INNOVATION ................................................ 17
The role of digital technologies ...................................................................... 17
A model for the transformation of cities to innovation hubs ............................... 19
Global Knowledge Centre .............................................................................. 19
13 ESTABLISHING THE PROCESS .................................................................. 19
Selection of cities......................................................................................... 19
Monitoring the progress ................................................................................ 22
Overall timeline ........................................................................................... 24
ANNEX I: ENGAGEMENT WITH CITIZENS AND STAKEHOLDERS ......................... 26
Citizen engagement events ........................................................................... 26
Table of events ............................................................................................ 27
Participants’ priorities towards climate neutrality in their city by 2030 ................ 27
Stakeholder events ...................................................................................... 27
ANNEX II: RECOVERY FROM THE COVID-19 CRISIS ......................................... 28
Context ...................................................................................................... 28
The role of ‘Green Europe’ ............................................................................ 28
Climate neutral cities as a means to recovery and build forward ........................ 29
ANNEX III: SUPPORTING EVIDENCE ............................................................... 30
Studies and experts support.......................................................................... 30
Other evidence provided to the Cities Mission Board ......................................... 31
ANNEX IV: FUNDING & FINANCING FOR THE MISSION ..................................... 31
Climate City investment: contributing to recovery and climate transformation ..... 31
The role of public funding of city climate investment plans ................................ 31
2
Financing the Cities Mission........................................................................... 33
Climate City Contracts .................................................................................. 36
Conclusions................................................................................................. 38
ANNEX V: SELECTION PROCESS AND CRITERIA .............................................. 39
Introduction ................................................................................................ 39
The Mission Process ..................................................................................... 40
Phase 0: Call for Expression of Interest .......................................................... 40
Phase 1: Co-create Application ...................................................................... 41
Phase 2: Co-create the Climate City Contract .................................................. 43
Phase 3: Implement the Contract .................................................................. 43
Reports to the Mission Board ......................................................................... 44
3
THIS IS THE MISSION OF OUR TIMES!
The introduction of a Climate City Mission is a radical new way of achieving climate
neutrality – and of doing so faster, by 2030. The Mission aims to promote system
innovation across the value chain of city investment, targeting multiple sectors such as
governance, transport, energy, construction and recycling, with support from powerful
digital technologies. As such, it requires a change in regulations, approaches and
instruments combined with the willingness to go beyond existing schemes and habits.
The Mission also demands a change of attitude towards practical aspects of
implementation, but also as concerns people and organisations working together:
citizens, local governments, central and regional governments, and European
institutions. We expect citizens, city administrations and political leaders to show
commitment, imagination and determination. We expect you to implement this Mission
with the same determination as the Americans did with their Moonshot. The climate-
minded transformation of cities goes far beyond the idea of the Man on the Moon. This
is The Mission of our times!
Hanna Gronkiewicz-Waltz, Chair of the Mission Board for Climate Neutral and Smart
Cities
4
1 EXECUTIVE SUMMARY
1 Why a mission on climate neutral cities? Mitigating climate change at a global
scale is a huge challenge and the time for the necessary societal transformation is
short. Cities cover about 3% of the land on Earth, yet they produce about 72% of all
global greenhouse gas emissions. On top of that, cities are growing fast; in Europe, it
is estimated that by 2050 almost 85% of Europeans will be living in cities. Therefore,
the climate emergency must be tackled by cities – and by citizens.
2 The Climate City Mission. After consultations with citizens across many European
cities, the Mission Board proposes the following mission: “100 climate neutral cities by
2030 - by and for the citizens”. Its aim is to support, promote and showcase 100
European cities in their systemic transformation to climate neutrality by 2030, making
these cities innovation hubs for all cities. The Mission is much more than a traditional
R&I programme. It is a challenging and ambitious endeavour where cities commit to
transformation and engage in it for the benefit of Europe’s quality of life and
sustainability.
3 A new model of city governance. The main obstacle to climate transition is not a
lack of climate-friendly and smart technologies, but the capacity to implement them.
The present silo-based form of governance, designed and developed for traditional city
operations and services, cannot drive an ambitious climate transition. Therefore, a
systemic transformation is urgent, accompanied by a more strategic, holistic and long-
term climate investment approach, together with a new city governance for climate
action. The transformation will be based on three principles: (1) a holistic approach to
foster innovation and deployment, (2) a matrix of integrated and multi-level
governance, and (3) a deep and continuous collaboration between all stakeholders.
This model requires a strong commitment from cities and their political leadership to
innovate the administration and to bring all stakeholders, business, academia and civil
society on board.
4 A new role for the citizens. Pivotal for the mission’s success is the involvement of
citizens in their different roles as political actors, users, producers, consumers or
owners of buildings and transport means. In the consultations with the Board, citizens
have given priority to mobility, energy, urban infrastructures/buildings, circular
economy and behavioural change.
5 A Climate City Contract as a new delivery mechanism. The Mission Board
proposes to introduce a Climate City Contract as a new mechanism to deliver EU
support to cities in the form of more innovation, better regulation, and integrated
financing. It will be signed by the Mayor on behalf of the local government and local
stakeholders, by the Commission, and by national or regional authorities. A
precondition for a Climate City Contract is that citizens are given a new active role,
new platforms to act and better resources to play their role. At least 1% of the funding
granted by the EU to cities through a Climate City Contract should be devoted to
support citizens and their platforms for the development and implementation of
climate actions.
6 A new role for innovation, experimentation and learning. The 100 cities signing
the Climate City Contracts will develop and implement a new innovation concept:
system innovation in governance, transport, energy, construction and recycling,
supported by powerful digital technologies (i.e. system innovation in the whole value
chain of city investment). These cities will spearhead the leveraging of the synergies of
Europe’s twin green and digital transformations. They will also work together to
address common challenges and create economies of scale. In the process, they will
serve as Innovation Hubs for other cities, meaning that hundreds of European cities
will be inspired by, learn from and replicate the ideas and solutions emerging from the
Mission.
7 A new form of funding and financing. To make the most of the European Green
Deal, the Multiannual Financial Framework (MFF) and the EU Recovery and Resilience
5
Facility, all investments should have a multiplying effect on the economy as well as a
transformative effect towards climate sustainability. Investment in city climate
transition does fulfil both these two conditions. The Mission Board suggests a new
integrated form of funding and financing for city climate investment plans:
a Lending & Blending Facility for Climate Cities as -a financial umbrella: in
cooperation between the EU Commission, the EIB and national climate funding and
financing facilities, and with resources for R&I as a core element;
the Commission and Member States make the funding of Climate City Contracts an
overall priority of the investment strategy of the new Recovery and Resilience
Fund;
up to 10% of resources for climate action under the next EU MFF to be allocated to
climate actions geared towards the objectives of the Climate Cities Mission;
Structural and Investment Funds’ operational programmes 2021-2027 should
earmark projects to fund the Mission;
a one-stop-shop in the form of decentralized negotiation platform run by the EIB
offices in Member States;
a “mission label” awarded to every mission city, to allow preferential access to
technical support and financial instruments;
green budgeting as a tool to benchmark climate investments against their targets
and to align public finances with environmental objectives.
8 Climate cities as new drivers for sustainable growth – and export. By taking
the lead in the urban transition to climate neutrality, Europe will strengthen its role as
a global driver of sustainable growth, creating new investment opportunities and new
and better jobs. The Mission Board suggests to set up of a Global Knowledge Centre
on Cities and Climate that could facilitate and create synergies between European and
international climate initiatives and stakeholders.
9 The selection of cities. The main criteria will be ambition, commitment, capacity and
citizens involvement. In addition, inclusiveness will be an overarching principle, taking
into account a balanced geographical representation as well as differences in the
preparedness levels of cities. The application process will include three steps: (a) the
co-creation of the application, (b) the co-creation of the Climate City Contract and (c)
the implementation of the Contract. Reporting, monitoring and evaluation will be
based on the methodology of the Covenant of Mayors, already used by many
European cities.
1
2 WHY CITIES?
Cities cover about 3% of the land on Earth, yet they
produce about 72% of all global greenhouse gas
emissions. On top of that, cities are growing fast; in
Europe, it is estimated that by 2050 almost 85% of
Europeans will be living in cities1.
Cities are also the melting pot where decarbonisation
strategies for energy, transport, buildings and even
industry and agriculture coexist and intersect. As the
density of use and infrastructure is higher in cities,
there is also a higher potential for cross-sectoral
integration and for complex infrastructures such as
1
https://ec.europa.eu/knowledge4policy/foresight/topic/continuing-urbanisation/developments-
and-forecasts-on-continuing-urbanisation_en
6
smart grids2. In addition, cities have access to more capital and know-how and can create the
economies of scale necessary for the piloting and scaling up of new ideas and concepts.
“When it comes to climate action, no one is doing more than cities, but no one is doing
enough. We are entering a make-or-break decade for the preservation of our planet and
environmental justice for every community”3.
The climate emergency must be therefore tackled in cities. Equally important, it must be
tackled by engaging citizens who are not only political actors in a governance structure, but
also users, producers, consumers and owners. In these capacities, they can have a huge
impact on the environment and take an active role in their local urban areas, associations and
homes, thus driving the climate transition and improving the economy and the environment.
For the Mission to succeed, citizens and the civil society must be given more substantial roles,
new platforms for action and better resources.
The European Commission has recently presented a strategic long-term vision for a
prosperous, modern, competitive and climate-neutral economy by 20504. The European Green
Deal5, using the ‘man on the moon’ example, makes the case for a mission-oriented R&I
component in the Horizon Europe programme. The question is “How can Europe help cities
become climate neutral as fast as possible?”
3 MISSION AIM AND OBJECTIVES
The aim of the Mission is to:
- Support, promote and showcase 100 European cities in their systemic transformation
towards climate neutrality by 2030 and make these cities into experimentation and
innovation hubs for all cities, thus leading on the European Green Deal and on Europe’s
efforts to become climate neutral by 2050.
Its objectives include:
- Build a multi-level and co-creative process formalised in a Climate City Contract that,
while adjusted to the realities of each city, will aim at the shared goal of the mission;
- Promote citizens to become agents of change through bottom-up initiatives and
innovation and through new forms of governance;
- Help cities access the financial means to achieve the Mission through Horizon Europe, the
European Structural and Investment Funds, the Connecting Europe Facility, the Just
Transition Fund, the mechanism for Important Project of Common European Interest,
InvestEU, the Next Generation EU instrument and other EU funds;
- Foster a just transition, via the implementation of the Agenda 2030 and its Sustainable
Development Goals, to improve citizens’ health and wellbeing;
- Bring many co-benefits e.g. improved air quality, job creation, healthier lifestyles,
stimulating the positive effects of new sustainable mobility concepts;
- Identify European, national, regional and local policy gaps as well as R&I priorities to
contribute to the goals of the European Green Deal;
- Support the development of drivers of transition under five key enablers:
2 Final report of the High-Level Panel of the European Decarbonisation Pathways Initiative, p.112:
https://ri-links2ua.eu/object/document/667/attach/ec-18-002-
decarbonisation_booklet_27112018.pdf
3 Eric Garcetti, C40 Chair & Mayor of Los Angeles
4 https://ec.europa.eu/clima/policies/strategies/2050_en
5 https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal_en
7
o A model for the transformation of cities to innovation hubs;
o New forms of participative and innovative city governance;
o An economic and funding/financing model for climate action;
o An ‘integrated urban planning’ model;
o Smart systems and data platforms.
- Create synergies with and between existing European climate initiatives and stakeholders
such as the Covenant of Mayors, the EIT and its relevant KICs, the Green City Accord, the
European Green Capital Cities, the SET-plan and the 100 PEDs initiative, the EIP-SCC and
the lighthouse projects, CIVITAS;
- Align with other missions and initiatives that support the Green Deal to ensure
complementarity, in particular with the mission on climate adaptation and its work to
adapt Europe – and its urban areas – to the actual or expected climate and its effects;
- Collaborate on innovation with the European business to enhance the competitiveness of
European industry in the global markets.
Given the multiple typologies of European cities and the difficulty to deliver the Mission in
under a decade, the Board proposes that – under special circomstances – applicant cities may
limit the scope of their application to a specific area – see Chapter 13 on the selection
process. However, such limited application should be accompanied by an ambitious strategy
for climate neutrality for the larger urban area.
With the aim of leaving no one behind, the 100 cities will be encouraged to include partner
cities in their Climate City Contracts, in particular partner cities with significant structural
challenges who will receive support towards achieving climate neutrality after 2030.
4 CONTRIBUTION TO SDGS
The UN Agenda 2030 for Sustainable Development provides a global policy framework for
ending all forms of poverty, fighting inequalities and tackling climate change in a socially
inclusive manner.
Eurostat data shows that the EU made progress towards almost all the 17 Sustainable
Development Goals (SDG)6. It also singles out SDG 13 ‘Climate Action’ as one of the areas in
need of more and faster progress. Looking at the indicators for SDG 13, the main reason for
EU’s moderate advance is the need to reduce energy consumption in all its forms. An
integrated approach, such as the one proposed under the mission, can contribute to
mitigating this challenge where energy consumption is at its highest: urban areas.
6
https://ec.europa.eu/eurostat/web/sdi/key-findings
8A holistic and transformative mission for climate neutral cities, based on citizen participation
and social inclusiveness, can contribute and help EU progress towards multiple SDGs.
5 THE EU CLIMATE FRAMEWORK AND THE MISSION
To achieve in ten years what Europe plans to achieve in 30 years is a huge challenge that
requires a systemic transformation of European cities. Still, this is both necessary and
feasible. It is necessary for acting on the global climate emergency and for delivering co-
benefits that will improve the health, wellbeing and prosperity of citizens. It is feasible
because technologies and innovative solutions for sustainable energy, transport, food, water
and material systems already exist – and more options will be available in the years to come
due to Horizon Europe and national R&I programmes7. Based on a comprehensive impact
assessment, analysis of the National Energy and Climate Plans8, and considering stakeholder
contributions received to the public consultation9, the Commission will propose a new EU
ambition to reduce greenhouse gas emissions by 2030. By June 2021, the Commission will
also review and, where necessary, propose to revise all relevant policy instruments to deliver
additional greenhouse gas emissions reductions. In early 2021, the Commission will adopt a
new, more ambitious EU strategy on adaptation to climate change in order to strengthen
efforts on climate-proofing, resilience building, prevention and preparedness, ensuring that
businesses, cities and citizens are able to integrate climate change into their risk management
practices. With framework conditions on a positive path, the big challenge is the lack of
capacity and commitment for change. Moreover, the EU Commission is currently developing
taxonomies for the financing of sustainable growth, climate change mitigation and climate
change adaptation.
Climate neutral cities must also address climate adaptation and resilience through assessment
of risks and vulnerabilities, as a basis for adaptation plans. The inclusion of adaptation in the
Climate City Contracts will be elaborated in collaboration with the mission on climate
adaptation.
7 https://ec.europa.eu/info/horizon-europe-next-research-and-innovation-framework-
programme_en
8 https://ec.europa.eu/info/energy-climate-change-environment/overall-targets/national-energy-
and-climate-plans-necps_en
9
https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12265-2030-Climate-
Target-Plan/public-consultation
9The Mission is based on two main pillars:
The MFF 2021-202710 and Next Generation EU11 proposals that will impact the
European and national frameworks for the funding of climate action, including the
Horizon Europe programme12 where the Mission is anchored in terms of objectives,
R&I agenda, and societal challenges and priorities;
The European Green Deal13 which sets an unprecedented level of policy ambition
and reach for climate and environmental action and for the financing and inclusiveness
of the transition.
The two-fold response of the Next Generation EU and the MFF 2021-202714 to the coronavirus
pandemic should help repair the economic and social damage brought by the crisis and
mobilise the necessary investments. Similarly, the Mission is designed as a flagship initiative
that complements and blends with these pillars, aiming to set new standards for climate and
urban agendas and for their implementation while contributing to Europe’s recovery.
While connected to a wide range of European policies and strategies (e.g. the Climate Law 15 &
the Climate Pact16, the EU plan for circular economy17, the European long-term strategy for
205018 and the National Energy and Climate Plans, the Urban Agenda for the EU 19, the
European Digital Strategy20, the Smart Specialisation Strategies21 and platform, the Smart
and Sustainable Mobility Strategy22), the Mission will also connect these policies and
strategies to the local level.
As innovation hubs and national, European and global forerunners, the participating cities will
inspire additional urban areas, and eventually the whole of Europe, to accelerate their policies
for climate action and transition. The Mission will therefore bring great added value to a
climate neutral Europe.
6 A STRATEGY FOR CLIMATE NEUTRALITY
For over a decade, European cities have been leading Europe’s efforts to implement ambitious
climate action. More than 10.000 cities have signed the European Covenant of Mayors while
10 https://ec.europa.eu/commission/future-europe/eu-budget-future_en
11 https://ec.europa.eu/commission/presscorner/detail/en/ip_20_940
12 https://ec.europa.eu/info/horizon-europe-next-research-and-innovation-framework-
programme_en
13 https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal_en
14 https://ec.europa.eu/info/live-work-travel-eu/health/coronavirus-response/recovery-plan-
europe_en
15 https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12108-Climate-Law
16 https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12219-European-
Climate-Pact
17 https://ec.europa.eu/environment/circular-economy/
18 https://ec.europa.eu/clima/policies/strategies/2050_en
19 https://ec.europa.eu/futurium/en/urban-agenda
20 https://ec.europa.eu/digital-single-market/en/content/european-digital-strategy
21 https://s3platform.jrc.ec.europa.eu/
22 https://ec.europa.eu/transport/themes/strategies/news/2020-02-03-commissioner-valeans-
speech-eu-strategy-mobility-and-transport_en
10an important number of cities work with other important initiatives 23. In the Covenant of
Mayors, signatory cities pledge action to support the implementation of the EU 40%
greenhouse gas reduction target by 2030 and the adoption of a joint approach to tackling
mitigation and adaptation to climate change.
The Mission for climate neutral cities aims to boost these efforts in two ways: by setting the
greenhouse gas reduction target by 2030 at 100% and by promoting a systemic change and
transformation of cities, including via the adoption of the ‘by and for the citizens’ way of
thinking and working.
A city’s strategy for climate neutrality should explain the starting point in its societal,
economic, ecological and political dimensions. It should include the climate action baseline of
the city: its existing climate pledge, strategy and action plans for 2030, all these most
probably in the form of the city’s SECAP 24 for the Covenant of Mayors. This will allow for an
assessment of the city’s ‘climate policy deficit’: “what more do we need to do compared to
what we are currently doing in order to become climate neutral by 2030?”
A participating city should be able to deliver a credible climate strategy and action plan for
reaching carbon neutrality by 2030 (areas of intervention, milestones and timeline) and to
identify the challenges and corresponding process through which the local partnership aims to
address them. Methodologies such as ‘decarbonisation pathways’ and the ‘theory of change’
are expected to be valuable tools in the formation of a credible and realistic strategy. In
addition, the principles of ‘integrated urban planning’ should be instrumental in the
description of a climate strategy and action plan that can be transformative and agile enough
given the complexity of reaching carbon neutrality in such a short time.
Important issues that the strategy should tackle include:
the connection with the local/regional or national strategy for climate neutrality by
2050;
the ‘cross-border’ issue: the participating city should ensure that measures taken will
not be physically unconnected or stop working at the borders of the selected site25.
The experience of the COVID-19 crisis has made the inclusion of resilience an imperative in
any long-term strategy of a city. It has also highlighted the connection between air quality
and well-being to health crises. Design principles and operation rules need to be reconsidered
in areas such as urban planning, public transport, health services and urban food logistics.
Moreover, all social services and support - especially for those more in need - must be
evaluated and shielded against such extraordinary events.
7 THE CLIMATE CITY CONTRACT
To address the challenge of climate neutrality and help better deliver EU policies, the Mission
proposes a multi-level co-creation process through the introduction of a Climate City
Contract. The purpose is to:
a) express the ambition and commitment of all involved parties to the Mission objectives;
23 For example, European cities that signed the Compact of Mayors, now part of the Global
Covenant of Mayors of the more than 1.500 cities, work with the European Energy Award to
implement effective energy and climate policy.
24 Sustainable Energy and Climate Action Plan (SECAP)
25
Examples could include physical infrastructure (e.g. cycling paths not connected with the rest of
the network) or digital infrastructure (e.g. applications or services that stop working outside an
area)
11b) identify the policy and implementation gaps as a basis for a strategy for transition;
c) coordinate stakeholders and empower citizens in the city around a common climate goal;
d) coordinate the national/regional and EU authorities to deliver the necessary legal,
governance and financial framework conditions to support each city;
e) create a one-stop-shop for multi-level negotiations to facilitate city action for transition.
Adapted to the specific circumstances of each city, a Climate City Contract will include the
goal and targets, specify the strategy and the action plan for transition, and identify
stakeholders and responsibilities. The Contract is not meant as a closed document that only
binds a city legally to a course of action up to 2030. Instead, it emphasises the high ambition,
the participatory approaches and the multi-level governance collaboration that will trigger
innovation and change towards climate neutrality. The main idea is to create a demand-
driven, live document that puts the cities at the centre of the transformation process and
determines – in the form of local ecosystems - their scope, activities and timeline.
A central part of a Climate City Contract should be about unlocking the drivers to
transformation. The Mission prioritises five main drivers: new forms of participatory and
innovative governance, a new economic and funding model, integrated urban planning, digital
technologies and innovation management.
8 THE PARTNERSHIPS UNDER THE CONTRACT
The Climate City Contract will be a politically binding document that covers all the elements of
the mission. Since multi-level governance is an indispensable ingredient for the mission’s
success, the Contract will be signed ideally by:
the city/metropolitan government, which will play a strong leadership notably
through the role of the Mayor, and will decide, together with all stakeholders, on the
best way of organizing and innovating its local form of governance around the Mission.
City stakeholders like business, academia and civil society could be encouraged to
take a formal part in the contract;
the European Commission. Since it is difficult to identify which specific entity
representing the European Commission could sign the contract, it will be key to
develop options that would ensure the institution’s commitment, both for the policy
and funding sides of its role. In Annex IV the Board proposes to give this coordinating
12role to the EIB as one option26;
the respective national or regional authorities. Relevant regional or national
stakeholders (e.g. regional transport companies, national energy producers, national
research institutions, etc.) could be encouraged to join formally the contract by the
relevant regional or national signatory. The regional Smart Specialization Strategies
and their connection to EU Cohesion Policy can serve as a model on how to set up
multi-sector governance models with strong R&I and funding policy components.
Most of the policy frameworks, rules and regulation, and standards that cities will need for the
complex technical, financial, and social endeavour of reaching climate neutrality will come
from regional/national or European levels. The funding and financing of the effort towards
climate neutrality will also depend on these governance levels. Close collaboration with the
city will maximise the possibilities of securing the resources for the transition to a climate
neutral economy and society. Moreover, national and regional authorities can play a pivotal
role in knowledge transfer and replication efforts as they share, understand and largely define
the common conditions in all cities of a country or region.
Multi-stakeholder governance across cities will also be encouraged. With the help of the
Mission’s framework and facilities, this should take two forms:
A systematic clustering of cities that have signed a Climate City Contract, share the
same conditions, and want to solve common challenges or create economies of scale;
Teaming with cities that have not signed a Climate City Contract, meaning the
hundreds of European cities that want to be inspired, learn from and replicate the
ideas and solutions that will come out of the mission.
9 TOWARDS A NEW CITY GOVERNANCE – BY AND FOR THE
CITIZENS
Modern urban development is a complex process involving many stakeholders with varying
ambitions and interests that are not always compatible. The Mission proposes a systemic
transformation that goes beyond the usual top-down approach. Instead, it uses a horizontal
coordination of the stakeholders and citizens in a city who jointly agree on a vision, targets,
interventions and synergies to share and reduce their climate impact. This process is
particularly important for the shaping and implementation of climate policies and therefore of
our mission.
The involvement of citizens in their different roles as political agents, users, producers,
consumers or visitors is particularly pivotal for the mission’s success – hence the title “by and
for the citizens”. In these capacities, citizens have a huge impact on the environment and
climate, and they can take an active role to drive the transition to climate neutrality as co-
designers, co-creators, co-implementers and co-beneficiaries. For example, in several remote
consultations with the Board organized by cities across Europe, citizens have given priority to
mobility, energy, urban infrastructures and buildings, circular economy and behavioural
change.
The Climate City Contract will therefore give citizens and civil society an active role and, as a
pre-condition, will provide them with new platforms and better resources to design and
implement climate actions – hence the need for a clear governance roadmap in the climate
city contract. Moreover, social inclusion will be a particularly important element of the
contract as it will ensure that all residents can participate in the co-creation process. In this
26 This option should be considered knowing that the EIB does not have an office in every Member
State
13respect the selection criteria for cities to embark in the Mission will include active citizen
involvement, with the indicator of social inclusion as a strong necessary element.
The Board proposes that at least 1% of the EU funding granted to cities in the framework of a
Climate City Contract should be devoted to supporting citizens and civil society platforms to
effectively engage citizens in the development and implementation of climate actions.
A new city governance model able to push a systemic transformation to climate neutrality
should also encourage the concerned public administration to evolve from its traditional silo-
based working culture and organisation to a more strategic, cross-cutting, integrated, citizen-
driven way of working. Without a clear political and organisational evolution in this direction,
such transformation will not be possible.
That is why evolving to a new city governance model is critical both for managing the Mission
and facilitating climate transformation in all cities across Europe. Although such a general
model will need to take into account and be adapted to the specific circumstances and
traditions of each city, some key principles can be shared across Europe: (a) a holistic
approach fostering systemic innovation instead of the present silo based and fragmented
approach – leading to integrated planning, (b) a multi-level governance and (c) a deep and
continuous collaboration with citizens and between all stakeholders. Besides, innovating the
governance as such is a necessary ingredient to deliver on the three principles.
The principles imply that all local, regional, national and European stakeholders can take part
in the negotiation and networking processes (fig. 1) around the Mission – as stated in
Chapters 7 and 8. Collaboration between the various stakeholders is not limited to traditional
partial systems (policy, administration, economy, society) and it is focused on resolving
certain problems.
Figure: Multi-governance approach for the cities mission
The transition to climate neutrality requires changes across the entire policy spectrum as well
as a collective effort of all sectors of the economy and society, as illustrated by the
Commission in its Communication ‘The European Green Deal’. As citizens and communities
have a powerful role to play in driving forward the transformation towards climate neutrality,
strong public and social engagement on climate action should be facilitated. This could be
done through innovative instruments such as the “climate alliances” in the city 27. Cities shall
engage with all parts of society to enable and empower them to take action towards a
climate-neutral and climate-resilient society. The Commission shall facilitate an inclusive and
27
Some examples are available under the “climate alliance" webpage:
https://www.climatealliance.org/home.html. They only constitute examples, not something
that is mandatory for the cities mission.
14accessible process at all levels, including at national, regional and local level, identifying
actions to contribute to the decarbonisation goal.
An innovative city governance requires a strong city leadership with a clear political drive and
a local authority that invests in innovating itself. Innovation is inherently a bottom-up
process, and so national governments (and Europe) need to invest in greater innovation at
local level, with freedom to experiment as well.
The holistic approach, as opposed to the silo approach, will require a change of habits and
style of management.
The main capabilities/competences that should be assured at the city level are as follows:
Organizational capabilities, including orchestration; connection with regional, national
and European initiatives; and political support
Technical capabilities, including capacitation; learning by experimenting; advising;
financial and project management
Design and monitoring capabilities, including designing; strategic and evolutionary
evaluation; and KPI monitoring
The required paradigm shift should lead to the adoption of integrated urban planning practices
that approach the city holistically, promote multi-benefit solutions and break the traditional
silos in urban projects. This type of urban development and projects can yield solutions that
make efficient use of resources and provide significant benefits for cities, their citizens and
the economy.
A common understanding on how integrated urban systems are planned, built and run still
needs to be developed and implemented for all cities in Europe. The Mission can be a catalyst
in this direction. The point where clean and sustainable urban mobility, near-zero or positive
energy buildings, green energy production and the use of tools such as the ‘digital twin cities’
meet is an example of a starting point on the way to 2030.
10 A STRATEGY TO SECURE FUNDING AND FINANCING
The cities mission is part of the greater objective of modernising and decarbonising the EU's
economy that will stimulate significant additional investment. Today around 2% of GDP is
invested annually in our energy system and related infrastructure. This would have to
increase by 40% to a 2.8% of the EU GDP to achieve a net-zero greenhouse gas economy.
Additionally, there is investment needed for the modernisation of mobility systems, resource
recycling systems, and food systems.
The Mission Board has commissioned an independent analysis based on information from
cities all over the EU to get an indication of what additional investments are needed,
compared to a business as usual trajectory28, roughly 10.000 € per citizen, to reach zero
scope 1 and scope 2 emissions. The analysis, which includes transportation, heating, buildings
and electricity, also indicates a net positive economic case for society at 26 billion €, including
co-benefits such as air quality, increased physical activity, noise and accidents.
The overwhelming part of this funding and investment will have to come from private asset
holders, an array of investors (from commercial banks to private equity funds and institutional
holdings), and from public sector sources at the local, regional and national level. However,
28
According to a report prepared by Material Economics, the additional investment is estimated to
be of EUR 96 Bn for 100 European cities by 2030, each having an average population of
~100,000 citizens, but producing a net positive economic case for society at 25 billion EUR
(cumulated benefits of 121 billion EUR on the period 2020-2050, including co-benefits such as
air quality, increased physical activity, noise and accidents)
15there is still a funding gap that must be filled through public funding or innovative business
models to secure the highest climate standards.
The current system for the funding and financing of climate innovation and investment at city
level is too fragmented. A new approach with appropriate instruments for a coordinated
stream of public and private funding for innovation and infrastructure are needed to facilitate
a systemic transformation to climate neutrality.
The Mission Board proposes such a coordinated approach of creating synergies among EU
programmes and fostering financial and capital innovation across Europe. The Mission Board
recommends the following actions:
a financial umbrella in the form of a Lending & Blending Facility for Climate
Cities, working in cooperation with national climate funding and financing facilities
with the R&I resources as a core element;
up to 10% of the resources allocated to climate actions in the next MFF are
geared towards the objectives of the Cities Mission;
Structural and Investment Funds’ 2021-2027 operational programmes should
earmark projects to fund the Mission;
the Commission and Member States make funding of Climate City Contracts an overall
priority of the investment strategy of the new Recovery and Resilience Facility;
a “mission label” to every mission city allowing a preferential access to technical
support and available funding and financial instruments;
a one-stop-shop in the form of decentralized negotiation platform run by the EIB
offices in Member States
On top of public investments, a strong effort should be done to find business models for the
key sectors that should be transformed to become climate neutral. Moreover, to achieve the
decarbonization goal, the Mission should also foster a change in the market structure via
multi-level policy innovations.
The investment needed for achieving climate neutrality by 2030 will differ between Member
States and between cities. This is due to national and local circumstances, including what has
already been achieved and what will be defined in the co-creating process for CCCs.
Investment will also depend on the efficient use of allocated resources. The Climate City
Contract must include a realistic strategic planning, analysis of the business-as-usual
scenarios, complemented by an economic appraisal to ensure that any financial support is
well invested and efficiently planned throughout the whole timeline of action. Low-hanging
fruits would be particularly effective to reduce the first 15-20% of CO2e emission as this may
only require low to very low investments. They may also catalyze additional investments and
unlock economically unattractive measures, within a larger portfolio with deeper impacts.
11 ECONOMIC TRANSITION
The limited resources and boundaries of our planet force us to seek new ways of producing
and consuming. The EU already has a track record on modernising its economy while reducing
emissions. Between 1990 and 2018, greenhouse gas emissions decreased by 23% while the
economy grew by 61%29.
29 https://ec.europa.eu/commission/presscorner/detail/en/fs_19_6720
16There is significant potential in the global markets for low-emission technologies and for
sustainable products and services. Likewise, the circular economy offers great potential for
new activities and jobs. However, the transformation is taking place at a slow pace. One of
the aims of the European Green Deal is to support and accelerate the transition of EU’s
industries to a sustainable model of inclusive growth.
The transformation towards a sustainable and circular economy contributes to addressing
these challenges. When combined with behavioural changes, such a transformation has the
potential to contribute to the mission’s objectives and to reduce the need for investment for
low and zero-carbon solutions. On the other hand, we should expect and address the
challenges and risk of having gains towards climate neutrality cancelled out by ‘rebound
effects’ due to behavioural or other systemic reasons.
To this end, cities via their participatory ecosystem will need to discuss, develop and
experiment with ideas and proofs of concept for combining behavioural change and new
economic models in order to open the road to climate neutrality and a circular economy.
The Mission will strengthen markets and deployment for new technologies and R&I. Through
testbeds, urban living labs, upgrades in the existing residential areas or the construction of
new city districts, the Mission will create business opportunities, support city development and
spur economic progress. In addition, the Mission will make a strong business case for
transforming the way products are designed, produced, used and recycled in the EU. Overall,
by taking the lead in the urban transition to climate neutrality, Europe is expected to create
new investment opportunities and jobs30.
12 A MISSION THAT PROMOTES INNOVATION
The role of digital technologies
As city populations grow, the demand for services and the pressure on resources increase.
This demand puts a strain on energy, water and mobility services, which are fundamental to a
city’s prosperity and sustainability. At the same time, cities and communities are undergoing
a digital transition process which needs to be appropriately implemented.
With this in mind it is evident that making our cities and communities climate neutral and
smart is an absolute need for achieving the ‘twin green and digital transformation’ in the EU.
The diffusion of ICT is essential for stimulating economic development and boosting economic
activity in cities. Europe’s digital policy and initiatives (such as the new Digital Europe
programme) will support and accelerate the transition to sustainability for cities and
communities through digital, in particular by building high quality connectivity infrastructure,
developing a digital environment that empowers end-users, respects European values and
norms, encourages the development of skills, and brings long-term growth opportunities
across all sectors of the European economy.
Estimates31 indicate that ICTs could deliver approximately 7.8 GtCO2e of emissions savings,
representing around 15% of total emissions in 2020. Examples of projects that could have a
great impact include stability, effectiveness and safety of low (zero) carbon electric grids,
automated disassembly and separation of waste using AI and robotics. On top of these
processes, ICT can also help prevent significant damage arising from disruptive weather
patterns and phenomena, through climate impact modelling for optimal mitigation and
adaption. This will allow for a wide collection and better access to the wide range of
environmental “big” data and also help engage with citizens using digital tools.
30 https://ec.europa.eu/clima/sites/clima/files/docs/pages/vision_4_economic_en.pdf
31 https://www.theclimategroup.org/sites/default/files/archive/files/Smart2020Report.pdf
17In particular, ICT-based solutions could reduce commuting by 15–20% and cut greenhouse
gas emissions by 10–15% (McKinsey Global Institute, 201832), while urban digital twins could
significantly improve cities’ ability to simulate or model policy outcomes, given that today only
12% of city data is analysed and used for decision making and management (Forrester,
201433). An increasing amount of data is also being collected by various ICT and social media
technologies that could support the cities’ and communities’ transformation. To this end, the
planned creation of common European dataspaces, in particular the Green Deal dataspace,
will be an important step to develop the digital ecosystem of the environment. One of its early
deliverables will be the creation of a data ecosystem for climate-neutral and smart
communities, which will facilitate the access, share and re-use of locally-relevant data (in
areas such as mobility, energy, climate and zero pollution) and as such can serve as the
underlying digital infrastructure for the cities supported by the Mission. While the cities to be
supported through the Mission have their own challenges and particularities, recent studies
(Erasmus Centre for Data Analytics, 202034) indicate that these challenges could be more
efficiently addressed by implementing interoperable, urban digital platforms (using a common
set of standards) on the one hand and helping cities access, share and use cross-domain
data, on the other hand.
Therefore, the Mission will need to be powered by a proper framework and by digital solutions
that (i) allow the management of cross-domain data (interoperable platforms and
mechanisms for data sharing) and (ii) also help cities pursue their digital transformation their
own way, i.e. by preserving their security, flexibility as well as their data and technological
sovereignty when adopting technological solutions.
An example can be found in the ‘Join, Boost Sustain’ political Declaration 35, a new initiative
that aims to strengthen the European way of digital transformation in cities and communities
and boost the efforts to use digital solutions to create places where people enjoy living and
working
The following initiatives can be of interest to the Mission:
Future spending under the Digital Europe Programme in the area of Smart Cities and
Communities to support the digitalization of urban areas in order to adopt AI-based
services for green purposes;
Work with Digital Innovation Hubs to help smart cities and communities in their use of
advanced digital technologies such as Artificial Intelligence;
Work with the COP-CITIES community to engage smaller cities and support them in
scaling up digital solutions;
Work towards the creation of a smart communities’ dataspace with an agreed
governance structure and collaboration mechanism to access, share and re-use all
kinds of data from different sources with relevance for cities and communities.
Other key areas to be addressed and incentivised to work on new solutions include:
Energy efficiency, aiming at zero emissions to reach the full potential of energy
efficiency - especially in the buildings sector that accounts for 40% of energy demand;
Deployment of renewables and use of electricity to fully decarbonise Europe’s
energy supply - as calculated by the Commission36, an electricity supply that is fully
32 https://www.mckinsey.com/industries/capital-projects-and-infrastructure/our-insights/smart-
cities-digital-solutions-for-a-more-livable-future#
33
https://www.forrester.com/report/The+Forrester+Wave+Big+Data+Hadoop+Solutions+Q1+20
14/-/E-RES112461
34https://discovery.rsm.nl/articles/436/?tx_rsmdiscovery_detail%5Bpreview%5D=0&cHash=b3db1
ad9420ab59b47ad1d7d12af3dad
35 https://living-in.eu
36 https://ec.europa.eu/clima/policies/strategies/2050_en
18decarbonised by 2050 must come approximately 80% from renewable generation;
An efficient mobility for all, clean, safe and accessible including carbon free and
alternative fuels, promotion of public transport, walking and cycling, smart multi-
modal solutions such as mobility as a service (MaaS), and automation;
Integration of the circular economy approach that employs reuse, sharing,
repair, refurbishment, remanufacturing and recycling in a close-loop system for
minimising the use of resource inputs and the creation of waste, pollution and carbon
emissions;
Reaping the full benefits of bio-economy and create essential carbon sinks
since both global and European assessments confirm that a net-zero emissions
economy will require increasing amounts of biomass compared to today’s
consumption;
Optimizing the carbon footprint of Gigabit society as the latter becomes an
increasingly important part of the society and economy.
A model for the transformation of cities to innovation hubs
Besides the traditional supply- or demand-driven approaches, the Mission adopts a challenge-
based and objective-driven approach to city innovation. This will ensure that activities are in
line with the ambition of the mission. In addition, the Mission considers city innovation as
pertaining not only to technology-based innovation, but also to the social, creative,
organisational and financial innovations needed to transform cities.
In its activities and projects, the Mission will go beyond traditional R&I calls for proposals,
engaging a wider public and enabling faster replication and dissemination of innovation. To
this end, cities will test new ideas, technologies, solutions and methodologies. They will also
be encouraged to adopt management roles or structures that will act as catalysers of
innovation across departments and traditional silos.
Global Knowledge Centre
The design and implementation of the Mission and of Climate City Contracts will benefit from
research, innovation and deployment activities supported under various EU programmes. The
Mission will also take inspiration from ambitious climate goals and initiatives put forward by
individual cities and will learn from successful innovation projects and full-scale investments.
It is important to ensure that no positive result or knowledge is wasted or must be re-
invented. To this end, the Mission will encourage, monitor and evaluate the scaling-up and
replication of good practices and of effective technologies for the benefit of cities and of the
European economy at large.
These activities may lead to the setup of a Global Knowledge Centre that could facilitate and
create synergies between European and international climate initiatives and stakeholders. The
centre would serve cities as well as citizens, academia and business.
13 ESTABLISHING THE PROCESS
Selection of cities
The selection of cities will be open and transparent, with a clear process organised in phases
and criteria published before the beginning of the process. The target of 100 cities should not
be read as an upper limit. Moreover, as some cities might fall short of the 2030 target, this
scenario should be expected (and tolerated, if not welcomed) in an ambitious experimentation
of this scale.
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